National Instruments reports record quarterly and annual revenue

JANUARY 31--National Instruments (Austin, TX, USA; www.ni.com/nati) has reported record quarterly revenue in Q4 2006 of $181.5 million, a 14% increase over Q4 2005.

JANUARY 31--National Instruments (Austin, TX, USA; www.ni.com/nati) has reported record quarterly revenue in Q4 2006 of $181.5 million, a 14% increase over Q4 2005. Geographically, revenue in US dollar terms for Q4 2006 compared to Q4 2005 was up 13% in the Americas, up 15% in Europe, and up 13% in Asia, equaling overall growth of 14%. In local-currency terms, revenue was up 12% in Europe and up 10% in Asia.

Revenue from instrument-control products declined by 5% Y-O-Y in Q4, compared to a 1% Y-O-Y increase in Q3. The company believes this slowdown in instrument control reflects the recent slowdown in the traditional test and semiconductor capital-equipment markets. Instrument control now represents 10% of revenue down from 12% in Q4 last year. The net Y-O-Y impact of acquisitions on revenue this quarter is immaterial at $500k.

The remainder of the product portfolio, that is, virtual instrument products, had 16% Y-O-Y organic revenue growth, the strongest performance of the year. The continued strong organic growth of virtual instrument products, despite the slowdown in the global PMI, validates the company's strategy of heavy investment in R&D to drive new product success.

For 2006, revenue totaled $660 million, up 15.5% year-over-year in USD terms and 16.1% year-over-year in local currency. GAAP fully diluted EPS for 2006 was 89 cents with record annual net income of $72.7 million, an 18% increase over 2005. Non-GAAP fully diluted EPS for 2006 was $1.06 with record annual net income of $87 million, a 35% increase over 2005. For the year, non-GAAP operating margin increased to 16% from 14% in 2005 and 12% in 2004. GAAP operating margin for 2006 was 13.3%.

The company announced that the board of directors increased the quarterly dividend by $0.01 to $0.07 per common share payable on March 5, 2007, to shareholders of record on Feb. 12, 2007. The company also announced today that the board of directors has approved a new share repurchase plan that increases the number of shares of common stock that the company is authorized to repurchase from 1.5 million to 3 million. As of Dec. 31, 2006, the company had $250 million in net cash and short-term investments, up from $223 million on Sept. 30, 2006.


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